McDonalds SWOT Threats

McDonalds SWOT Threats - SWOT Threats 1. Threat 1...

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SWOT Threats 1. Threat 1 (description of threat 1) – I would like to use “competition” a. How is this threat related to serving customers’ needs? b. How can the firm prevent this threat from limiting its capabilities in the short- and long- term? 2. Threat 2 (description of threat 2) a. How is this threat related to serving customers’ needs? b. How can the firm prevent this threat from limiting its capabilities in the short- and long-term? 3. Threat 3 (description of threat 3) a. How is this threat related to serving customers’ needs? b. How can the firm prevent this threat from limiting its capabilities in the short- and long-term? Industry/Competition Threats * New competition from venues offering "healthier choices" for a quick meal: As consumers are looking for these healthier choices for their quick lunch or dinner, the typical "fast food" industry is seeing more and more competition from venues that previously were not a threat. These new venues are better equipped to offer the healthier choices, and in order to keep up, the "fast food" industry is having to look into ways to do the same (Coulter). * Other food industries trying to break into the breakfast market: For the "fast food" industry, the breakfast market is a big money maker. Currently however, many companies outside of this industry are trying to pull from this market as well. The increased competition for consumers' breakfast business could potentially hurt the "fast food" industry as they could loose significant business to other industries (Coulter). Economic Threats * Increasing median household income in the United States could draw business away from the "fast food" industry and into more expensive food industries: With the median household income continually increasing, the fast food industry could suffer due to households choosing to eat at more expensive venues. Just like more income means more disposable income, the consumers could choose to put that extra disposable income into higher priced restaurants (http://en.wikipedia.org/wiki/Household_income_in_the_United_States).
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* Increasing prices are causing the industry to struggle to keep its prices low: Fast food is expected to not only be a quick and easy option for people to get their meals, but it is also expected to be cheap. As the prices of the different ingredients and products that are used in the final product increase, the industry is struggling to maintain that "cheap option" image (Coulter). Demographic Threats * Aging population seems to prefer sit-down, full service dining: As the industry is seeing the population age, it is becoming clear that the aging consumers are partaking less and less from the "fast food" industry. Rather, this part of the market is turning to other food industries due to their preference for the full-service dining experience (Coulter). Sociocultural Threats
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McDonalds SWOT Threats - SWOT Threats 1. Threat 1...

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